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🇮🇳 CMA Intermediate · subject
CMA Intermediate Law and Ethics Syllabus
Every chapter and topic of Law and Ethics examined in CMA Intermediate — 2 chapters, 4 topics, plus 50 flashcards written against it.
Law and Ethics syllabus — full chapter and topic list
Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Law and Ethics in CMA Intermediate, not a summary of it.
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Corporate Laws
2 topics- Companies Act, 2013
- Corporate Governance
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Business Ethics
2 topics- Introduction to Business Ethics
- Corporate Social Responsibility
Law and Ethics flashcards for CMA Intermediate
20 of 50 cards from the Law and Ethics deck — real questions with worked answers.
Under the Companies Act, 2013, what is the minimum number of members required to form a public company and a private company?
A public company requires a minimum of 7 members and a private company requires a minimum of 2 members.
What is the maximum number of members allowed in a private company under the Companies Act, 2013?
200 members (excluding present and past employees who are members); joint holders are counted as a single member.
Define a 'One Person Company (OPC)' under the Companies Act, 2013.
A company that has only one person as its member (Section 2(62)). It must have a nominee, can have only a natural-person resident Indian member, and is treated as a private company.
What is the minimum and maximum number of directors for a public and private company under the Companies Act, 2013?
Minimum: 3 directors for a public company, 2 for a private company, 1 for an OPC. Maximum: 15 directors (can be increased beyond 15 by passing a special resolution).
Under Section 149 of the Companies Act, 2013, which class of companies must appoint at least one woman director?
Every listed company and every public company with paid-up share capital of Rs 100 crore or more, or turnover of Rs 300 crore or more.
What is the requirement for a resident director under Section 149(3) of the Companies Act, 2013?
Every company must have at least one director who has stayed in India for a total of not less than 182 days during the financial year.
Define 'Memorandum of Association (MOA)' and name its clauses under the Companies Act, 2013.
The charter of the company defining its scope. Clauses: Name, Registered Office (Situation), Objects, Liability, Capital, and (for OPC) Nominee/Subscription clause.
What is the difference between Memorandum of Association and Articles of Association?
MOA defines the company's relationship with the outside world and its objects/powers (it is supreme); AOA contains internal rules and regulations for management and is subordinate to the MOA.
What is the 'Doctrine of Ultra Vires' under company law?
Any act done by a company beyond the scope of its objects clause in the MOA is void and cannot be ratified even by all shareholders.
What is the 'Doctrine of Indoor Management' (Turquand Rule)?
Outsiders dealing with a company are entitled to assume that internal procedures and requirements have been duly complied with; they need not inquire into internal regularity.
What is the time limit for holding the first Annual General Meeting (AGM) under the Companies Act, 2013?
Within 9 months from the close of the first financial year. Subsequent AGMs must be held within 6 months from the close of the financial year, with a gap of not more than 15 months between two AGMs.
What quorum is required for a general meeting of a public company under Section 103 of the Companies Act, 2013?
5 members personally present if members are up to 1,000; 15 members if more than 1,000 up to 5,000; 30 members if more than 5,000. For a private company, 2 members personally present.
Distinguish between an Ordinary Resolution and a Special Resolution.
Ordinary resolution: passed by a simple majority (votes in favour exceed votes against). Special resolution: requires votes in favour to be at least three times the votes against (75% majority), with 21 days' notice specifying intention.
What is the minimum notice period required for calling a general meeting under the Companies Act, 2013?
Not less than 21 clear days' notice in writing or through electronic mode.
Define a 'Prospectus' under Section 2(70) of the Companies Act, 2013.
Any document described or issued as a prospectus, including a red herring prospectus, shelf prospectus, or any notice/circular/advertisement inviting offers from the public to subscribe for securities.
What is a 'Red Herring Prospectus'?
A prospectus that does not include complete particulars of the quantum or price of the securities included; issued prior to the issue of a final prospectus.
What is the maximum number of companies in which a person can be appointed as a director under the Companies Act, 2013?
20 companies, out of which the maximum number of public companies cannot exceed 10.
Define 'Director Identification Number (DIN)' under the Companies Act, 2013.
A unique identification number allotted by the Central Government to any individual intending to be a director of a company (Section 153/154).
What is the minimum paid-up capital requirement for a private and public company after the Companies (Amendment) Act, 2015?
The minimum paid-up capital requirement (Rs 1 lakh for private, Rs 5 lakh for public) was omitted; there is now no minimum paid-up capital requirement.
What is 'Buy-back of shares' and what is its maximum limit under Section 68 of the Companies Act, 2013?
A company purchasing its own shares from existing shareholders. Limit: maximum 25% of the aggregate paid-up capital and free reserves; the debt-to-capital-and-free-reserves ratio after buy-back must not exceed 2:1.
Planning Law and Ethics for CMA Intermediate
Law and Ethics is about 13% of the CMA Intermediate syllabus by topic count — 4 of 31 topics, spread over 2 chapters. At roughly 45 minutes per topic plus 12 minutes per sub-topic, a first pass runs to about 3 hours.
Work top-down: read the chapter, then tick topics off individually rather than marking the whole chapter done. Sub-topics are where silent gaps hide.
Law and Ethics (CMA Intermediate) FAQ
What is in the CMA Intermediate Law and Ethics syllabus?
Law and Ethics is split into 2 chapters — Corporate Laws and Business Ethics, containing 4 topics and 0 sub-topics in total.
How many chapters are there in Law and Ethics for CMA Intermediate?
2 chapters. Law and Ethics accounts for about 13% of the topics in the whole CMA Intermediate syllabus (4 of 31).
How long should I spend on Law and Ethics for CMA Intermediate?
Budget around 3 hours for a first pass through Law and Ethics — about 45 minutes per topic plus 12 minutes per sub-topic across its 4 topics. Add revision cycles on top.
Are there flashcards for CMA Intermediate Law and Ethics?
Yes — a 50-card Law and Ethics deck. Sample cards are printed on this page, and the full deck is free in the Examius app with spaced repetition scheduling.